What is the most important performance indicator for your marketing department, and why? The following answers are provided by members of Young Entrepreneur Council (YEC), an invite-only organization comprised of the world's most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.
Customer attrition rate
Alex Miller, PosiRank LLC
"We closely monitor our monthly customer attrition statistics because they tell us very quickly whether our clients are getting results and are happy to continue to pay our monthly platform fee. We know that customers who get results stay with us, so by monitoring this rate and following up with customers who leave, we can work to reduce this attrition rate as much as possible."
"I want to know what percentage of the people who see our ads we are able to turn into paying customers. This helps us figure out many things, including if our marketing team is reaching the right people, using the right messages, reaching a large enough audience, etc."
Average spend per client
"I expect that my marketing tactics will drive website traffic and achieve above average conversions. However, when we can set up strong sales funnels that increase the amount of revenue that's being generated by each client, I know that we've succeeded beyond our goals for the client. Whatever those averages are, even just increasing them by 10 percent is a big win."
Month over month revenue growth
"Everything comes down to month-over-month revenue growth. If you're not growing at a high velocity, you'll be a small businesses -- not a startup. Paul Graham has an amazing post on this, which can be summed up by saying 'startups equal growth.' Getting from zero revenue to IPO requires a huge amount of growth every month to make the cut, though this rule mainly applies to business-to-business companies."
"With every marketing campaign, we strive to go beyond just advertising. We aim to get people deeply involved in a movement, to engage with ideas, share them, and help us evolve the category. When fans are engaged, you get more from marketing. To track overall brand progress, we look at an aggregate score of awareness and how meaningful and differentiated the message is compared to competitors."
"The ROI of anything that you spend time and money on is extremely important. Email campaigns and social media marketing can be very time consuming, and time is money. You want to calculate the cost for your conversions that were a result of your marketing technique."
Landing page conversion rate
"One of the most important performance indicators for a marketing department, especially one that generates a lot of content, is the landing page conversion rate. If your rate isn't at least 10 percent, you might want to contact your marketing pros and look for ways to develop better landing page content."
Revenue per lead
"This KPI encapsulates several factors, including lead quality, conversion rate from lead to opportunity, your sales team's batting average, and average selling price. It's a good guiding metric. You can then dive deeper to peel back the layers to identify bottlenecks or challenges."
Overall brand recognition
"If we find that our sales team is getting leads and phone calls more frequently, or that tentative clients we reach out to have recognition of our brand, we know our marketing efforts are making a difference. If those we are in contact with have heard our name, seen our social networks or are aware of us before we have initial contact with them, we are really reaching people."
Sales qualified leads
"Either intentionally or accidentally, too many organizations equivocate a prospect as a lead. But until sales development qualifies a prospect, they're not a lead. They're a prospect. Sales-qualified leads must have at least three things. They must self identify as having a pain your product solves, they must be the actual decision maker for purchasing, and they must have either agreed to a demo or discussed purchasing already."
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